State of Maine Comprehensive Energy Plan 2008-2009
Charting the Course for the 21st Century
John Kerry, Director Governor’s Office of Energy Independence and Security
Governor’s Office of Energy Independence & Security Agenda
Energy Profile Overview of Vision, Mission Purpose Comprehensive Energy Action Plan Report on Progress Toward Meeting Wind Power Goals Report on State and Municipal Wind Generation Development
Governor’s Office of Energy Independence & Security Nothing rattles in the universe everything is connected. Governor’s Office of Energy Independence-Albert & Security Einstein World Energy Profile
Governor’s Office of Energy Independence & Security Global Energy Context
500000 462,000 450000 400000 350000 300000 250000
200000 Trillion BTU Trillion 150000 108,000 100000 50000 3,476 457 0 World United States New England Maine
Governor’s Office of Energy Independence & Security Slide: Verrastro Governor’s Office of Energy Independence & Security Slide: Verrastro Governor’s Office of Energy Independence & Security World Oil Production Total: 85 Million Barrels Per Day
Country mbl/day Russia 12% Rest of World 32.37 Rest of World Russia 10.56 38% Saudi Arabia 10.47 Suadia Arabia 12% United States 6.73 Iran 4.68 China 4.08 United States 8% Mexico 3.74
Canada 3.40 Iran UAE Venezuela 2.98 6% 3% China Kuwait 2.98 5% Kuwait UAE 2.81 4% Canada Mexico Venezula 4% Total 84.85 4% 4%
Source: IEA
Governor’s Office of Energy Independence & Security Global Oil Reserves
Slide: Verrastro
Governor’s Office of Energy Independence & Security World Oil Supply Forecast
Source: EIA
Governor’s Office of Energy Independence & Security World Oil Consumption Total: 85 Million Barrels Per Day
Country mbl/day Saudi Arabia Brazil Canada Rest of World 23.0 Germany 3% 3% 3% 3% United States 20.6 India Rest of World European Union 14.3 3% 26% Russia China 7.5 3%
Japan 5.0 Japan 6% Russia 2.8 India 2.7 China Germany 2.4 9% Brazil 2.3 United States Canada 2.3 European Union 24% 17% Saudi Arabia 2.3 Total 85
Source: IEA
Governor’s Office of Energy Independence & Security Slide: Verrastro Governor’s Office of Energy Independence & Security World Oil Consumption Forecast
Source: EIA
Governor’s Office of Energy Independence & Security World Oil Price Forecast
EIA Cost in 2012
Source: EIA
Governor’s Office of Energy Independence & Security OPEC Oil Revenue Estimated $750 Billion in 2008
Governor’s Office of Energy Independence & Security Top Ten Oil Importers to the U.S.
Thousands of Barrels per Day (2008) 2500 Canada 2000 Canada 1,912 Saudi Arabia 1500 Mexico Saudi Arabia 1,520 Venezuela Nigeria 1000 Iraq Angola
Mexico 1,180 500 Brazil Algeria Thousands of Barrels of Thousands Venezuela 1,038 0 1 Nigeria 944 Top Ten Oil Importers
Iraq 652
Angola 504 Total US Consumption 20 Million Barrels per day
Brazil 228 Total US Production 6 Million Barrels per day
Algeria 312 Total US Oil Imports 14 Million Barrels per day
Source: EIA
Governor’s Office of Energy Independence & Security National Energy Profile
Governor’s Office of Energy Independence & Security National Energy Context
500000 462,000 450000 400000 350000 300000 250000
200000 Trillion BTU Trillion 150000 108,000 100000 50000 3,476 457 0 World United States New England Maine
Governor’s Office of Energy Independence & Security National Total Energy Flow Total: 108 Quadrillion BTU
Source: EIA
Governor’s Office of Energy Independence & Security National Primary Energy Consumption
Source: EIA
Governor’s Office of Energy Independence & Security National Electricity Flow By Supply and Sector Total: 42 Quadrillion BTU’s
In quadrillion BTU Source: EIA
Governor’s Office of Energy Independence & Security National Electrical Generation By fuel
1 Renewables wood, wind, Petroleum waste, other gases, geothermal, solar, batteries, chemicals, hydrogen, pitch, purchased steam, sulfur, miscellaneous technologies, and non- renewable waste Source: EIA (municipal solid waste from non-biogenic sources, and tire-derived fuels). 2 Conventional hydroelectric power and pumped storage.
Governor’s Office of Energy Independence & Security National Peak Electrical Generation Capacity (by fuel source 2007) Total: 999 Million Kilowatts
Source: EIA 1.Conventional and pumped storage. 2. Blast furnace gas, propane gas, other manufactured and waste gases derived from fossil fuels, batteries, chemicals, hydrogen, pitch, purchased steam, sulfur, and miscellaneous technologies.
Governor’s Office of Energy Independence & Security U.S Electricity Consumption
Source: EIA
Governor’s Office of Energy Independence & Security U.S Electricity Prices
Source: EIA
Governor’s Office of Energy Independence & Security U.S Natural Gas Consumption
Source: EIA
Governor’s Office of Energy Independence & Security U.S Natural Gas Storage
Source: EIA
Governor’s Office of Energy Independence & Security Federal Government Energy Use
Source: EIA
Governor’s Office of Energy Independence & Security Regional Energy Profile
Governor’s Office of Energy Independence & Security Regional Energy Context
500000 462,000 450000 400000 350000 300000 250000
200000 Trillion BTU Trillion 150000 108,000 100000 50000 3,476 457 0 World United States New England Maine
Governor’s Office of Energy Independence & Security Regional Natural Gas Supplies
Sable Island, Nova Scotia •Discovered in 1979 •3 TCF Gas Reserves •Currently in Decline •Deep Panuke Discovered in 1998
Governor’s Office of Energy Independence & Security Approximate Source of NE Natural Gas in 2008
Source: ISO-NE
Governor’s Office of Energy Independence & Security Governor’s Office of Energy Independence & Security Regional Natural Gas Consumption Total: 741,100 MMCF
Sector MMCF Vehicle Pipeline 0.15% 0.81% Electric Power 370,000 Residential 23.00% Residential 170,000
Commercial 110,000 Electric Power 49.90% Industrial 83,000
Commercial Pipeline 6,000 14.91%
Vehicle 1,100 Industrial Total 741,100 11.23%
Source: EIA
Governor’s Office of Energy Independence & Security Governor’s Office of Energy Independence & Security Source: Canadian Wind Energy Atlas Regional Wind Power Resources
Wind ResourcesGovernor’s in NorthernOffice of New Energy England Independence and Eastern Canada & Security Regional Wind Power Development
Source: DOE’s EERE
Governor’s Office of Energy Independence & Security Regional Electric Generation Demand Total 130,723,000 MWH
MWH Percentage
MA 58,825,350 45%
CT 15,294,591 26%
NH 1,376,513 9%
ME 123,886 9%
RI 7,433 6%
VT 372 5%
Total 130,723,000 100%
Source: ISO-NE
Governor’s Office of Energy Independence & Security New England Electric Generation Capacity by Fuel Type
Source: ISO-NE
Governor’s Office of Energy Independence & Security New England Electric Generation by Fuel Type
Source: ISO-NE
Governor’s Office of Energy Independence & Security Governor’s Office of Energy Independence & Security Governor’s Office of Energy Independence & Security Governor’s Office of Energy Independence & Security Governor’s Office of Energy Independence & Security Governor’s Office of Energy Independence & Security Governor’s Office of Energy Independence & Security Governor’s Office of Energy Independence & Security New England Peak Electric Generation Demand Total 2007: 26,000 MW
New England Summer Peak
31000
26000
21000
16000 MW
11000
Source: ISO-NE 6000
1000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Governor’s Office of Energy Independence & Security Regional Electric Transmission RELIABILITY PROJECTS
1. Southwest CT Phase I 2. SWCT Phase II 3. NSTAR 345 kV Project, Phase I and II 9 4. Northwest Vermont 5. Northeast Reliability Interconnect 6. Monadnock Area 5 7. New England East-West Solution 4 8. Southeast Massachusetts 9. Maine Power Reliability Program In service 6 Under construction Under study 3
7 8 1
2 Source: ISO-NE
Source: ISO New England Inc. Governor’s Office of49 Energy Independence & Security • 485 miles of transmission line & related substation work • Estimated Cost: $1.4 billion Governor’s Office of Energy Independence & Security Total Cost of Transmission in NE
From ISO NE
Governor’s Office of Energy Independence & Security Maine Energy Profile
Governor’s Office of Energy Independence & Security Maine Energy Context Maine Total: 457 Trillion BTU’s
500000 462,000 450000 400000 350000 300000 250000
200000 Trillion BTU Trillion 150000 108,000 100000 50000 3,476 457 0 World United States New England Maine
Governor’s Office of Energy Independence & Security Governor’s Office of Energy Independence & Security Maine Energy Consumption by Sector 2006 Total: 458 Trillion BTU’s
End-Use Trillion Sectors BTU
Residential Industrial 147 Transportation 24% 29% Transportation 131
Residential 108 Commercial 16% Commercial 71
Industrial Total 458 31%
Source: EIA
Governor’s Office of Energy Independence & Security Maine Energy Consumption by Source, 2006 Total: 458 Trillion BTU’s
Trillion Hydroelectric Power Source Btu 9.22% Petroleum 236 Biomass Biomass 109 23.77% Natural Gas 53
Hydroelectric Power 42
Other* 11 Other 2.39% Coal 6 Net Electricity Exports Petroleum Net Electricty 51.32% Exports & & Losses 1 Losses 0.28% Total Energy 458 Coal Natural Gas 1.44% 11.59% Source: EIA * Other includes: "Other" is geothermal, wind, photovoltaic, solar thermal energy, and net imports of electricity.
Governor’s Office of Energy Independence & Security Fuel Price Per Fuel Price Per Unit Efficiency Million Btu Fuel Type (dollars) units Appliance type Estimate (dollars)
Electricity $0.166 kw/hour Baseboard/Room Heater 100% $48.65
Propane $2.78 Gallon Average Boiler 78% $39.02
Propane $2.78 Gallon Modern Boiler 95% $32.04
Pellets $275.00 Ton Average Stove 60% $27.78
Fuel Oil (#2) $2.38 Gallon Average Boiler 73% $23.51
Pellets $275.00 Ton Modern Stove 75% $22.22
Cord Wood $250.00 Cord Average Stove 54% $21.04 Air Source Heat Pump $0.166 kw/hour Air-Source Heat Pump 240% $20.27
Fuel Oil (#2) $2.38 Gallon Modern Boiler 85% $20.19
Natural Gas $1.17 therm Average Boiler 78% $18.00
Cord Wood $250.00 Cord Modern Stove 70% $16.23
Natural Gas $1.17 therm Modern Boiler 85% $15.00 Geothermal Heat Pump $0.166 kw/hour Geothermal Heat Pump 350% $13.90
Based on 2008 Average Prices
Governor’s Office of Energy Independence & Security Maine Residential Consumption 2006 Total: 107 Trillion BTU’s
Trillion Natural Gas Wood Solar/PV 1.0% 2.9% LPG Source Btu 0.1% 5.0% Heating Oil 43.0 Kerosene Electrical System 7.3% Electrical System Losses Losses 32.0 29.8% Retail Electricity Sales 15.0 Kerosene 8.0 LPG 5.0 Wood 3.0 Natural Gas 1.0 Retail Electricity Heating Oil Sales 40.2% Solar/PV 0.1 13.7% Total 107
Source: EIA
Governor’s Office of Energy Independence & Security Maine Commercial Energy Consumption 2006 Total: 71 Trillion BTU’s
Trillion Source Btu Other Residual Fuel Natural Gas 3% 3% Electrical System 8% Biomass Energy Losses 31 3%
Heating Oil 15 Heating Oil Retail Electricity 21% Sales Retail Electricity Sales 14 20% Natural Gas 5 Biomass 2 Other* 2 Residual Fuel 2 Electrical System TOTAL 71 Energy Losses 42%
Source: EIA *Other includes: Motor Gasoline, LPG and Kerosene
Governor’s Office of Energy Independence & Security Maine Industrial Energy Consumption 2006 Total: 146 Trillion BTU’s
Trillion Other Natural Gas Coal Source Btu 2% 2% 2% Heating Oil Biomass 63 3% Electrical System Hydroelectric Energy Losses 28 Power 5% Residual Fuel 20 Biomass Retail Electricity Sales 13 44% Electrical System Hydroelectric Power 8 Energy Losses 19% Heating Oil 5 Natural Gas 3 Other* 3 Coal 3 Retail Electricity TOTAL 146 Sales Residual Fuel 9% 14% Source: EIA
*Other includes: Petcoke, Lubricants, Kerosene, LPG, Gasoline, Asphalt, and Road Oil
Governor’s Office of Energy Independence & Security Maine Transportation Energy Consumption 2006 Total: 131 Trillion BTU’s
Trillion Source Btu Other Residual Fuel 1% 4% Jet Fuel Motor Gasoline 87 8%
Diesel Fuel 28
Diesel Fuel Jet Fuel 10 21%
Residual Fuel 5 Motor Gasoline Other* 2 66%
TOTAL 132
Source: EIA Other includes: Lubricants, Petcoke, LPG, Asphalt and Road Oil
Governor’s Office of Energy Independence & Security Estimated State Government Energy Expenditures
2008
Electricity Space Heating BTU’s 36% 40% (Trillion) Dollars
Space Heating* 3.7 $54,000,000
Transportation* 1.2 $33,000,000
Electricity* 1.1 $49,000,000
Transportation Total* 6 $136,000,000 24%
•Heating Oil: 17 Million Gallons •Diesel: 7.3 Million Gallons •Gasoline: 3.4 Million Gallons •Natural Gas: 600,000 MMBTU •Electricity: 263 Million KWH
*Based on: BGS estimates for the Executive Department, University of Maine estimates and a draft survey from University of Southern Maine on energy in Maine Schools. Does not include data on the Community College system
Governor’s Office of Energy Independence & Security Governor’s Office of Energy Independence & Security Maine Electrical Generation Capacity 2006 Total: 3,456 MW
Fuel Type MW Waste Biomass 2% 9% Natural Gas 1,377 Oil 29% Oil 1,006
Hydro 720 Hydro 21% Biomass 298
Waste 53
Total 3,456
Natural Gas Source: EIA 39%
Governor’s Office of Energy Independence & Security Maine Peak Electric Generation Demand*
*Does not include MPS
Source: ISO-NE
Governor’s Office of Energy Independence & Security Growth of Maine Peak Electric Demand
Maine Summer Peak Load
2500
2000
1500 MW 1000
500
Source: ISO-NE 0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Governor’s Office of Energy Independence & Security New England Wholesale Price of Electric Energy
Source: ISO-NE
Governor’s Office of Energy Independence & Security US, NE, ME: Retail Price of Electricity 1990-2006 Retail Electricity Prices
14.0
13.0
12.0
11.0 M aine
10.0 New England cts/kWh U.S. 9.0
8.0
7.0
6.0
1990 1992 1994 1996 1998 2000 2002 2004 2006 Source: Maine PUC
Governor’s Office of Energy Independence & Security Maine Residential Price of Electricity Nov. 2008
Source: Maine Public Advocate Nov. 2008
Governor’s Office of Energy Independence & Security Maine Natural Gas Profile
Data: Maine Office of GIS
Governor’s Office of Energy Independence & Security Maine Natural Gas Consumption By Sector, 2008 Total: 50,000 MMcF
Sector MMcf Residential Pipeline 2% Commercial Electric 1% 9% Generation 40,500
Industrial Commercial 5,000 6%
Industrial 3,000 Residential 1000
Pipeline 500 Total 50,000
Electric Generation Source: EIA 82%
Governor’s Office of Energy Independence & Security Maine’s Heavy Haul Highway Network (100,000 LBs)
Data: Maine Office of GIS
Governor’s Office of Energy Independence & Security Data: Maine Office of GIS
Governor’s Office of Energy Independence & Security Maine Petroleum Consumption, 2006 Total: 1.8 Billion Gallons
Millions of Gallons Jet Fuel LPG 4% 5% Heating Oil Gasoline 714 Kerosene 26% 4% Heating Oil 457 Diesel Fuel 197 Residual Fuel Residual Fuel 189 11% LPG 88
Jet Fuel 75 Kerosene 67 Diesel Fuel Other 12 11%
Total 1,800 Gasoline 39%
Source: EIA
Governor’s Office of Energy Independence & Security Gasoline Prices and Consumption Estimated 2006 Consumption: 714 Million Gallons
Retail Gasoline 2008
450
400
350
300
250
200 Source: EIA 150
100
7-Jul
7-Jan 7-Apr 7-Jun 7-Jan
7-Oct 7-Nov
7-Feb 7-Mar
7-Aug 7-Sep 7-Dec 7-May
Governor’s Office of Energy Independence & Security What is the REAL cost to Maine for Gasoline:
Gallons Price/Gallon Total Cost Dollars (2006) (2008) (2008) Exported (-85%) 714 $3.31 $2.3 -$2.01 (Average price in Million 2008) Billion Billion 714 $4.14 $2.94 -$2.51 (peak price in Million 2008) Billion Billion
Based on EIA data and OEIS estimates
Governor’s Office of Energy Independence & Security Diesel Prices and Consumption Estimated 2006 Consumption: 197 Million Gallons
Retail Diesel 2008
550 500 450 400 350 300 250 200 150
Source: EIA 100
7-Jul
7-Jan 7-Apr 7-Jun 7-Jan
7-Oct 7-Nov
7-Feb 7-Mar
7-Aug 7-Sep 7-Dec 7-May
Governor’s Office of Energy Independence & Security What is the REAL cost to Maine for Diesel:
Gallons Price/Gallon Total Cost Dollars Exported (2006) (2008) (2008) (-85%)
197 $3.94 $778 -$661 Million (Average price in Million Million 2008) 197 $4.80 $948 -$805 Million (peak price in 2008) Million Million
Based on EIA data and OEIS estimates
Governor’s Office of Energy Independence & Security Heating Oil Prices and Consumption *Estimated 2006 heating oil consumption for all sectors: 457 Million Gallons
Maine Retail Heating Oil Prices
500
450
400
350 cents/gal 300
250
Source: EIA 200
1/7/2008 2/7/2008 3/7/2008 4/7/2008 5/7/2008 6/7/2008 7/7/2008 8/7/2008 9/7/2008 1/7/2009
10/7/2008 11/7/2008 12/7/2008
Governor’s Office of Energy Independence & Security What is the REAL cost to Maine of Heating Oil…
Gallons Price/Gallon Total Cost Dollars (2006) (2008) (2008) Exported (-85%) 457 $3.34 $1.53 -$1.3 Million (Average price in Billion Billion 2008) 457 $4.74 $2.15 -$1.83 Million (peak price in 2008) Billion Billion
Based on EIA data and OEIS estimates
Governor’s Office of Energy Independence & Security What is the REAL cost to Maine All Petroleum:
Gallons Price/Barrel Total Cost Dollars (2007) (2008) (2008) Exported (-85%) 1.8 $100 $5.97 -$5.077 Billion Barrel Billion Billion (Average price in 2008) 1.8 $147 $7.72 -$6.56 Billion Barrel Billion Billion (peak price in 2008)
Based on EIA data and OEIS estimates
Governor’s Office of Energy Independence & Security Petroleum expenditures effects on Maine’s economy 2008
15%
($896 Million)
85% Leaves the State $5 Billion
Governor’s Office of Energy Independence & Security The “Petro-Dependence Tax” Total tax revenue for Maine in FY 08: – $3.04 Billion
Estimated “Petro-Dependence Tax” on ALL Maine Citizens, Business and Industries in 2008: -$5 Billion
*Based on Bureau of the Budget Forecast
Governor’s Office of Energy Independence & Security What if… we saved 10% of our expenditures on petroleum products in 2008? 10% of the estimated $5,000,000,000 we expended on oil products would have resulted in a $500,000,000 savings that could have been invested to preserve and create jobs in Maine’s businesses and industries.
Governor’s Office of Energy Independence & Security Overview
Governor’s Office of Energy Independence & Security Executive Summary:
The Governor’s Office of Energy Independence and Security (OEIS), pursuant to the vision of the Governor and the provisions of the recently enacted Public Law 656, 2008 which directs the OEIS to develop a Comprehensive Energy Action Plan (Plan) for the State of Maine, is committed to advancing the principles, the programs and the integrated plans necessary to secure a safe, clean and affordable energy future for the citizens of Maine. Our nation, region and state have become dangerously dependent on unreliable, insecure and expensive foreign fossil fuel products. This comprehensive energy plan charts a course to guide Maine to a secure energy future with affordable, reliable and clean energy supplies that are environmentally responsible and economically beneficial to Maine energy consumers and utility rate payers. This inaugural state energy plan is based on the following energy, economic development and environmental principles:
Governor’s Office of Energy Independence & Security Principles Framing Maine’s Comprehensive Energy Policy: 1. Competitively priced energy is vital to the state’s economy; 2. Maine should increase its energy independence through greater reliance on cost-effective energy efficiency, conservation, demand management and distributed resources; 3. Maine’s energy policy ultimately relies on the health of competitive markets; 4. When markets do not take the long-term societal and environmental impacts of energy decisions into account, the State should look to other tools to achieve its goals;
Governor’s Office of Energy Independence & Security Principles Framing Maine’s Comprehensive Energy Policy: (cont.) 5) An adequate and reliable energy delivery infrastructure is critical to economic growth and to continued expansion of competitive energy markets; 6) Maine should continue to support diverse indigenous renewable energy resources; 7) State policies should seek to minimize the unnecessary environmental and public health impacts of energy production, distribution and use; 8) State Government should lead by example and action in its energy procurement, infrastructure and usage practices and policies; 9) Maine people should have access to adequate information on the costs, environmental impacts of their own energy choices; and 10) Interagency coordination at state, regional and federal levels is essential.
Governor’s Office of Energy Independence & Security Vision:
To provide leadership in the development of public and private partnerships that aspire to achieve the State of Maine’s goals of energy independence and security with clean, reliable, affordable, sustainable, indigenous and renewable resources.
Governor’s Office of Energy Independence & Security Mission: In conjunction with other departments of state government, the legislature, private industries and nonprofit institutions, provide an open, transparent and collaborative decision-making environment to create effective public/private partnerships that advance the achievement of energy independence, while optimizing Maine’s energy security, economic vitality and environmental integrity.
Governor’s Office of Energy Independence & Security Purpose: Chart the course to a more secure, affordable and sustainable energy future. Provide the governor, the legislature, and other entities with a clear understanding of the state’s energy profile, plans, processes and priorities. Identify the need for public and private entities to be engaged in the energy industry at the international, national, regional, state and local levels.
Governor’s Office of Energy Independence & Security Governor’s Office of Energy Independence & Security State of Maine Comprehensive Energy Action Plan 2008-2009 The following plan outlines the necessary action steps the State of Maine should consider implementing in order to achieve energy independence over the next 50 years. This Maine Comprehensive Energy Action Plan (Plan) consists of six main components:
1) Strengthening Energy Efficiency, Conservation and Weatherization; 2) Fostering Renewable Energy; 3) Improving Transportation and Fuel Efficiencies; 4) Upgrading Electricity and Natural Gas Services and Transmission Infrastructure; 5) State of Maine Leading by Example; and 6) Energy Emergency Preparedness and Response
The goal of the Plan is to chart a clear pathway to guide the State of Maine into a sustainable, reliable, secure, affordable, and environmentally responsible energy future. The OEIS is charged with the responsibility to develop the Plan, coordinate its implementation and revise it every two years.
Governor’s Office of Energy Independence & Security What’s wrong with the world, not enough people are saying what’s right with the world. G.K Chesterton
Governor’s Office of Energy Independence & Security I. Strengthening Energy Efficiency, Conservation and Weatherization Goal 1 Achieve all cost-effective energy efficiency in the State of Maine Objective: – Combine the energy efficiency programs of Efficiency Maine, the natural gas utilities, the RGGI and the Energy and Carbon Savings Trust (E&CST) into a single, “energy efficiency entity”. Goal 2 Provide opportunities for public and private investments in energy efficiency, conservation and weatherization. Objective: – Identify and document existing energy federal state and local efficiency programs.
Governor’s Office of Energy Independence & Security Goal 3 Support and implement energy audits for businesses and state facilities. Objective: – Create a “Smart Energy” energy audit model for Maine businesses and industries. Goal 4 Develop an interdisciplinary energy SWAT team to assist large industries and manufacturers in addressing their critical energy needs. Objective: – Create an Energy-SMART-Team for Maine businesses to address critical energy needs. Goal 5 Work with State Government to adopt an overall energy reduction goal at State facilities. Objective: – Identify potential energy efficiency opportunities at State facilities.
Governor’s Office of Energy Independence & Security Goal 6 Work with State Government to adopt an overall goal of new, renewable power generation at State facilities. Objective: – Work with Bureau of General Services (BGS), Maine Department of Transportation (MDOT), Maine Department of Education (MDOE), and other relevant State agencies to develop an aggressive plan for investing in the generation of clean renewable power at State facilities. Goal 7 Continue to promote increased efficiency standards for all new construction. Objective: – Support the Department of Public Safety and other relevant state agencies in the implementation of the newly enacted state wide energy and building codes. Goal 8 Increase the number and availability of energy efficient heating systems and appliances in the State of Maine. Objective: – Encourage increased efficiency standards for heating systems and appliances.
Governor’s Office of Energy Independence & Security Goal 9 Target weatherizing 100% of all Maine residences and 50% of all Maine businesses in the next twenty years. Objective: – Promote winterization and weatherization programs. – Expand the State’s Home Energy Loan Program (HELP). – Expand the State’s “Clean Tune and Evaluate Program”. Goal 10 Continue to promote and enhance training opportunities for certified energy auditors and weatherization technicians. Objective: – Increase the number of training courses for certified energy auditors. – Increase training for energy efficiency and weatherization service technicians. Goal 11 Reduce peak-load energy consumption in all sectors. Objective: – Develop a plan to increase energy efficiency, conservation and to reduce peak- load energy consumption in existing and new state government buildings. (Resolve 183, 2008.) – Develop a plan to reduce peak-load energy consumption in residential, commercial, and industrial customers.
Governor’s Office of Energy Independence & Security II. Fostering Renewable Energy (Wind, Solar, Biomass, Tidal and Geothermal)
Goal 1 Encourage Maine’s businesses and residences to invest in distributed renewable generation of energy. Objective: – Explore creating a “technology neutral” carbon offset incentive program. – Increase the amount of energy that can be credited to an individual or businesses’ utility account to encourage private investment in distributed renewable energy. – Standardize and streamline grid interconnection standards for distributed renewable energy applications. – Increase the development and local ownership of “community energy” in the State. – Re-examine the possibility of implementing utility rate de-coupling to encourage distributed generation.
Governor’s Office of Energy Independence & Security Goal 2 Continue to advance Maine’s position as a leader in responsible wind power development and maximize the tangible benefits Maine people receive. Objective: – Implement the Governor’s Wind Power Task Force recommendations: 2,000 megawatts (MW) of installed wind power capacity by 2015, 3,000 MW by 2020, 300 MW of the 2020 goal achieved with projects built offshore. – Provide financial incentives for the development of wind power in Maine. – Determine opportunities for the development of wind power by the State’s agencies, political subdivisions, and rural electric cooperatives. (Public Law 671, 2008.) – Foster education, awareness of and advocacy support for near-shore and off- shore wind power development in Maine.
Governor’s Office of Energy Independence & Security Goal 3 Work with State agencies, the Governor’s Ocean Energy Task Force, Maine Maritime Academy (MMA) and private developers to promote tidal power in Maine. Objective: – Review available research on “tidal technologies” and create a decision chart for applications. – Coordinate with Maine Maritime Academy on the Tidal Device Evaluation Center’s (TEDEC) proposed project in Castine, Maine. – Create economic impact overview for tidal power development in Maine. – Create public private partnerships in Maine with national and international tidal power companies.
Governor’s Office of Energy Independence & Security Goal 4 Seek to develop on-site clean, renewable energy projects at appropriate state facilities. Objective – Develop an aggressive plan for investing in clean renewable power at state facilities. – Select a site suitable for micro-wind power. – Select a site suitable for solar thermal application. – Select a site suitable for geothermal energy application. – Coordinate with the Department of Environmental Protection (DEP) to lead a stakeholder group to identify potential areas of concern with regard to groundwater and surface water resources from potential sources of pollution related to geothermal siting and operations. – Investigate the integration of carbon sequestration technology at a state facility.
Governor’s Office of Energy Independence & Security Goal 5 Work with public and private schools across the state to facilitate energy alternative demonstration projects. Objective: – Create a grant program to be housed in the new energy efficiency, conservation and weatherization entity for energy upgrades for public and private schools to upgrade their energy systems. – Remove outdated regulations that stand as barriers to alternative energy projects in schools. – Perform research to determine one Maine school suitable for wood chips/wood pellets. – Perform research to determine one Maine school suitable for geothermal energy. Goal 6 Support research at the University of Maine to create cellulosic ethanol from paper making waste. Objective: – Strengthen the relationship with the University of Maine and their partnership with private companies in the development of ethanol from paper making waste.
Governor’s Office of Energy Independence & Security Goal 7 Assist in the development of “bio-fuel” and “bio-mass” energy plants using Maine renewable resources. Objective – Continue working with biomass and bio-oil companies on pilot projects. Goal 8 Increase use of bio-fuels and alternative energy in state-occupied buildings Objective – Work with the DOC regarding biomass and bio-oil refineries using indigenous Maine fiber. – Select a Maine State facility to switch to 100% biomass or bio-oil for heating. – Select a Maine State facility to switch bio-mass tri-generation or cogeneration. – Encourage private sector investment in bio-mass tri-generation or cogeneration facilities. – Research and create a pilot project for a neighborhood to convert from fuel oil to bio-mass or bio-oil.
Governor’s Office of Energy Independence & Security Goal 9 Assist public schools with converting from fossil fuels to bio-fuels. Objective – Research and select one school district for conversion from fuel oil to biomass or bio-oil.
Goal 10 Encourage the development of ethanol-blend fueling stations. Objective – Facilitate a roundtable discussion with major transportation fuel companies. – Explore the potential for development of E-85 ethanol-blended fuel pumping stations in Maine.
Governor’s Office of Energy Independence & Security Goal 11 Increase the development and use of cogeneration and tri-generation in the State of Maine. Objective – Examine opportunities to eliminate barriers and to create incentives for the installation of energy systems that conserve energy through the reuse of waste heat (cogeneration). (Resolve 183, 2008.) – Identify tax and other financial incentives and potential policies to encourage the development of cogeneration/tri-generation systems. – Submit a report to the Utilities and Energy Committee by December 1, 2009 that includes findings and recommendations regarding energy conservation through the reuse of waste heat (cogeneration and tri-generation). (Resolve 183, 2008.) – Identify and initiate a cogeneration/tri-generation project at one hospital; one industrial site; and one multi-unit housing site. – Educate State and private business leaders about the cogeneration/tri-generation energy model.
Governor’s Office of Energy Independence & Security Goal 12 Encourage the strategic location and development of industrial and district heating energy generation clusters. Objective – Create State-wide map of industrial facilities and potential district heating energy plants and for “Eco-Park” sites. – Create project team for the pre-development of one district heating or Eco-Park site. Goal 13 Assist the University of Maine and other colleges with the use of bio- mass/bio-fuel cogeneration and tri-generation energy systems. Objective – Create an educational forum for Universities and Colleges regarding bio-fuel applications. – Select one site for bio-mass tri-generation application. – Work with one college in Maine to switch from fuel oil to biomass or bio-oil usage. Goal 14 Increase the generation of renewable power into the State of Maine’s electricity portfolio. Objective – Increase the existing Renewable Portfolio Standard (RPS) requirement in Maine above the existing requirement of 10% of new renewable energy by 2017.
Governor’s Office of Energy Independence & Security Governor’s Office of Energy Independence & Security III. Improving Transportation and Fuel Efficiencies Goal 1 Support and enhance state and private sector efforts for education and awareness of alternative transportation options and promotion of a low-carbon fuel standard and fuel efficient vehicles. Objective: – Continue outreach campaigns on alternative transportation options and fuel efficient vehicles. – In collaboration with DEP and DOT, monitor and coordinate state policy and programs to encourage adoption of a low-carbon fuel standard and reduction of vehicle miles traveled in the State. Goal 2 Support state programs that encourage the use of carpools, vanpools, car-sharing and telecommuting. Objective: – Work with MDOT, GO MAINE, other state agencies and the private sector to expand existing commute options.
Governor’s Office of Energy Independence & Security Goal 3 Support state transportation investments and encourage private investment for enhanced passenger and freight transportation systems. Objective: – Work with MDOT, the Northeast Passenger Rail Authority, other railroads and the private sector to prioritize transportation investments in passenger transit and rail infrastructure. – Work with MDOT and freight railroads to prioritize investments in freight transportation. – Work with MDOT, local transit providers and municipalities to prioritize transportation investments in bike and pedestrian infrastructure. – Work with MDOT, other relevant state agencies and the private sector to increase the use of alternative transportation fuels, including a low-carbon fuel.
Governor’s Office of Energy Independence & Security Goal 4 Encourage greater coordination of land use and transportation policy to reduce vehicle miles traveled and decrease greenhouse gas emissions. Objective: – Work with other state agencies and non-profit organizations to identify and implement key land use planning policies that promote “smart growth” through the development of mixed-use, compact development. – Work with other state agencies and non-profit organizations to identify and implement key transportation planning policies that promote “smart growth” through the use of transit-oriented development. – Research forest products’ industry mileage traveled between resource and process. Goal 5 Support public-private partnerships to develop “explorer” transit systems for tourist destinations. Objective – Coordinate and facilitate a roundtable discussion with stakeholders for explorer transit.
Governor’s Office of Energy Independence & Security VI. Upgrading Electricity and Natural Gas Services, Transmission Systems and Infrastructures Goal 1 Support the development of electrical transmission projects in Maine for increased reliability and to accommodate new Maine- based wind power from both on-shore and off-shore projects. Objective – Work with Maine utilities and interested parties to obtain “socialized” and other collaborative means of funding from the ISO-NE for proposed electrical transmission projects. – Continue working with the ISO-NE, other New England states, the Northeast International Committee on Energy (NICE) and the New England Governors’ Conference (NEGC) to determine an appropriate agreement on “socialized” and other collaborative means of funding transmission costs. – Support and encourage Federal funding of an enhanced “smart grid” transmission system in Maine and New England.
Governor’s Office of Energy Independence & Security Goal 2 Support the development of electrical transmission projects in Maine to accommodate economically and environmentally sustainable renewable energy from Northern Maine and Canada. Objective – Continue working with the NEGC and Eastern Canadian Premiers on an agreement on the transmission of clean, renewable power from Canada into New England. Goal 3 Promote natural gas as a “transitional fuel” by expanding the natural gas infrastructure to all sectors in Maine. Objective – Convene a year-long, natural gas “dialogue” with all major natural gas players in the state to define the critical challenges regarding the development of traditional natural gas and Liquefied Natural Gas (LNG) in Maine and to identify opportunities for the development of traditional natural gas and LNG projects where economically, socially and environmentally feasible. – Facilitate opportunities for private industry and residential customers to connect with natural gas companies in Maine to explore potential natural gas expansion projects.
Governor’s Office of Energy Independence & Security V. State of Maine Leading by Example Goal 1 Continue “lead by example” initiatives in Maine by implementing progressive energy policies applicable to State, County and local governments. Objective – Continue the “Clean Government Initiative” and expand upon current energy- saving policies. Goal 2 Continue to plan for Maine’s long term energy independence and security by using a 50-year planning horizon. Objective – Monitor progress of the Plan and quantify energy reductions, benefits, and expenditures. – Advocate for the goals included in this Plan at the State and Federal levels.
Governor’s Office of Energy Independence & Security VI. Emergency Preparedness and Response Goal 1 Continue to plan for an Energy Emergency. Objective – Update the 2007 State of Maine Energy Emergency Management Plan. – Continue the work of the Governor’s Pre-Emergency Energy Task Force. (Established Nov. 2007)
Governor’s Office of Energy Independence & Security Federal Stimulus Energy Spending Based on The House Bill
$43 billion in the energy section including: – $3.4 Billion for the State Energy Program (SEP) – $6.2 Billion for the Weatherization Assistance Program. – $3.2 Billion for Energy Efficiency & Conservation Block Grants – $500 Million for Industrial Energy Efficiency – $1 Billion Grants to Institutional Entities for Energy Sustainability and Efficiency – $8 Billion Renewable Energy and Transmission Loan Guarantee – $2 Billion Science (primary research) – $11 Billion Smart Grid
Governor’s Office of Energy Independence & Security Governor’s Office of Energy Independence & Security Questions?
Electronic versions of the plan can be downloaded at: http://www.maine.gov/oeis/docs/OEIS%20Comp%20Energy%20Plan.pdf
Governor's Office of Energy Independence and Security 22 State House Station Augusta, ME 04330 Tel: (207) 287 8927 http://www.maine.gov/oeis/index.html
Governor’s Office of Energy Independence & Security Report on State Progress Toward Meeting Wind Power Goals (PL 2007, c.661, sec.A-8 / LD 2283)
Wind Power Goals: At least 2,000 Megawatts (MW) of installed capacity by 2015; At least 3,000 MW of installed capacity by 2020, of which there is a potential to produce 300 MW of offshore wind power.
Governor’s Office of Energy Independence & Security Assessment of Progress
3 Grid-Scale Wind Projects in Operation: 103.5 MW installed capacity Mars Hill, (First Wind) - 42 MW Freedom, (Beaver Ridge) – 4.5 MW Stetson I, (First Wind) – 57 MW Total: 103.5 MW
Governor’s Office of Energy Independence & Security Assessment of Progress 3 Grid-Scale Projects in Development: 272.5 MW of potential capacity Kibby, (Transcanada) – 132 MW Stetson II, (First Wind) – 25.5 MW Rollins Mtn, (First Wind) – 60 MW Record Hill, (Independence) – 55 MW Total: 272.5 MW
Governor’s Office of Energy Independence & Security Assessment of Progress 4 Grid-Scale Projects in Discussion Phase: 309.5 MW potential capacity Roxbury, (Longfellow Wind) – 50 MW Bridgewater, (Horizon/Aroostook) – 195 MW Oakfield, (First Wind) – 45-60 MW Fox Island, (Fox Island, LLC) – 4.5 MW Total: 309.5 MW
Governor’s Office of Energy Independence & Security Assessment of Progress
State of Maine has met 5.17% of wind power goals with 103.5 MW of installed capacity. (Based on 2015 goal.) Could rise to 18% if all 272.5 MW of potential capacity are constructed. Could rise to 34% if all 309.5 MW in discussion phase are constructed.
Governor’s Office of Energy Independence & Security Assessment of Progress
At the current rate, Maine will need to bring online 263 MW of capacity a year, starting in 2010 to meet the state’s wind power development goals by 2015. Ambitious goals but OEIS doesn’t recommend revising goals at this time.
Governor’s Office of Energy Independence & Security Maine Wind Power Development Map
1. Mars Hill 2. Stetson I 3. Freedom 4. Kibby (5. Aroostook County Wind, Future Phases) 6. Bridgewater 7. Oakfield 8. Rollins Mtn. (9. Passadumkeag Mountain, Grand Falls Twp) (10. Mount Harris, Dixmont ) (11. Stewart Mountain, Highland Plantation) 12. Record Hill 13. Roxbury 14. Stetson II
(Projects in parentheses are proposed and not included in OEIS report or projections.)
Credit: Natural Resources Council of Maine
Governor’s Office of Energy Independence & Security DEP Wind Power Development Projects Map
Source: Maine DEP
Governor’s Office of Energy Independence & Security “Tangible Benefits”
Grid-scale wind power developments in Maine must provide significant “tangible benefits”. OEIS must report on tangible benefits to UTE committee annually including whether resources are needed to carry out analysis (Jan 15, 2009). DEP/LURC makes findings and undertakes quantitative analysis of tangible benefits (with other agency comments if requested).
Governor’s Office of Energy Independence & Security Tangible Benefits Tangible benefits are “environmental or economic improvements attributable to the construction, operation and maintenance of an expedited wind energy development.” Including: purchase of local materials, construction related employment, reduced property taxes, reduced electrical rates, natural resources conservation, operations/maintenance jobs, and others.
Governor’s Office of Energy Independence & Security Tangible Benefits
Tangible Benefits policy guidance to determine “significant” was developed by interagency group. Stetson II only project so far to fall under new law. (LURC takes up in Feb, 09.) OEIS does not recommend any additional funding mechanism at this time for analysis of tangible benefits, but may in the future.
Governor’s Office of Energy Independence & Security Tangible Benefits First Wind’s Stetson Development Area: Examples of tangible benefits $50 million of $65 million project costs were spent in Maine. Including: local jobs, land lease payments to landowners, reduced property taxes (Mars Hill mil rate dropped from $25 - $20), reduced energy price volatility, and environmental benefits of clean, renewable power.
Governor’s Office of Energy Independence & Security Permitting Processes
OEIS conferred with DEP, LURC and wind developers on new streamlined process. Consensus is it’s “too early to tell” to determine major policy successes or failures.
Governor’s Office of Energy Independence & Security Identified Successes
Maine is a leader in wind power development with 103.5 MW of installed capacity. DEP and LURC collaborated to develop and adopt a consistent permitting process. (DEP is responsible for organized territories; LURC unorganized territories.) Meaningful benefits are being delivered to Maine communities. More projects are being planned and developed.
Governor’s Office of Energy Independence & Security Projections
High degree of interest in developing wind resources in Maine. Numerous additional wind projects are in the discussion phase. No new technology trends are on the horizon that would affect Maine’s permitting process. The economy, credit crunch and the difficulty siting transmission could have a negative impact on wind development in Maine.
Governor’s Office of Energy Independence & Security Greenhouse Gas Emissions Reductions The 2003 law (PL 237) a Climate Action Plan for Maine includes goals to reduce GHG emissions to 1990 levels by 2010, 10% below those levels in 2020, and by a sufficient amount to avert the threat of global warming over the longer term, which could be as much as 75%. DEP reported in Jan, 2008 that the 11 most important policy actions modeled to account for more than half of the target GHG reductions in the Climate Action Plan are underway. For example: RGGI, RPS, Clean Car rules, energy efficiency and renewable power generation.
Governor’s Office of Energy Independence & Security Greenhouse Gas Emissions Reductions
*2006 DATA WILL BE AVAILABLE SHORTLY FROM NESCAUM AND WILL BE FORWARD TO UTE.
**Maine DEP will report in 2012 on progress compared Source: NESCAUM to baseline data in Climate Action Plan.
Governor’s Office of Energy Independence & Security Greenhouse Gas Emissions Reductions
*2006 DATA WILL BE AVAILABLE SHORTLY FROM NESCAUM AND WILL BE FORWARD TO UTE. **Maine DEP will report in 2012 on progress compared to baseline data in Climate Action Plan. Source: NESCAUM
Governor’s Office of Energy Independence & Security Climate Action Plan GHG Emissions Baseline
Governor’s Office of Energy Independence & Security Report on State and Municipal Wind Generation Development (PL 2007, c.671 / LD 2266)
OEIS is required to assist with the development, design and construction of wind and other renewable energy projects at state agencies, municipalities, electric co-operatives, and other similar entities.
Governor’s Office of Energy Independence & Security OEIS Responsibilities
Monitor developments in technology and financial opportunities for potential project development. Develop information resources to assist with project development. Form one or more advisory groups to help carry out responsibilities.
Governor’s Office of Energy Independence & Security Progress OEIS convened Advisory Group of “experts”, holding regular meetings. Identified numerous potential funding sources for projects. Working to develop a strategic plan (in collaboration with the “small wind working group”) that includes outreach and education to develop and disseminate information to promote project development.
Governor’s Office of Energy Independence & Security